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Viewing cable 08TOKYO2997, DAILY SUMMARY OF JAPANESE PRESS 10/27/08

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Reference ID Created Released Classification Origin
08TOKYO2997 2008-10-27 22:49 2011-08-26 00:00 UNCLASSIFIED Embassy Tokyo
VZCZCXRO6029
PP RUEHFK RUEHKSO RUEHNAG RUEHNH
DE RUEHKO #2997/01 3012249
ZNR UUUUU ZZH
P 272249Z OCT 08
FM AMEMBASSY TOKYO
TO RUEHC/SECSTATE WASHDC PRIORITY 8299
INFO RUEKJCS/SECDEF WASHDC PRIORITY
RHEHAAA/THE WHITE HOUSE WASHINGTON DC PRIORITY
RUEAWJA/USDOJ WASHDC PRIORITY
RULSDMK/USDOT WASHDC PRIORITY
RUCPDOC/USDOC WASHDC PRIORITY
RUEAIIA/CIA WASHDC PRIORITY
RUEKJCS/JOINT STAFF WASHDC//J5//
RHHMUNA/HQ USPACOM HONOLULU HI
RHHMHBA/COMPACFLT PEARL HARBOR HI
RHMFIUU/HQ PACAF HICKAM AFB HI//CC/PA//
RHMFIUU/USFJ //J5/JO21//
RUYNAAC/COMNAVFORJAPAN YOKOSUKA JA
RUAYJAA/CTF 72
RUEHNH/AMCONSUL NAHA 2971
RUEHFK/AMCONSUL FUKUOKA 0613
RUEHOK/AMCONSUL OSAKA KOBE 4396
RUEHNAG/AMCONSUL NAGOYA 8682
RUEHKSO/AMCONSUL SAPPORO 1186
RUEHBJ/AMEMBASSY BEIJING 6048
RUEHUL/AMEMBASSY SEOUL 2045
RUCNDT/USMISSION USUN NEW YORK 2272
UNCLAS SECTION 01 OF 12 TOKYO 002997 
 
SIPDIS 
 
DEPT FOR E, P, EB, EAP/J, EAP/P, EAP/PD, PA; 
WHITE HOUSE/NSC/NEC; JUSTICE FOR STU CHEMTOB IN ANTI-TRUST DIVISION; 
TREASURY/OASIA/IMI/JAPAN; DEPT PASS USTR/PUBLIC AFFAIRS OFFICE; 
SECDEF FOR JCS-J-5/JAPAN, 
DASD/ISA/EAPR/JAPAN; DEPT PASS ELECTRONICALLY TO USDA 
FAS/ITP FOR SCHROETER; PACOM HONOLULU FOR PUBLIC DIPLOMACY ADVISOR; 
CINCPAC FLT/PA/ COMNAVFORJAPAN/PA. 
 
E.O. 12958: N/A 
TAGS: OIIP KMDR KPAO PGOV PINR ECON ELAB JA
 
SUBJECT:  DAILY SUMMARY OF JAPANESE PRESS 10/27/08 
 
INDEX: 
 
(1) Discontent simmering in prefectural police; SOFA barrier emerges 
again (Okinawa Times) 
 
(2) Is Okinawa America's colony? Local residents angry with U.S. 
military's response following the crash of light aircraft (Ryukyu 
Shimpo) 
 
(3) Prime Minister Aso aims to eradicate image of being hawk (Asahi) 
 
 
(4) Japan should designate North Korea as terrorist state (Sankei) 
 
(5) Sakhalin-2 Project: Exports of LNG to Japan likely to begin 
early next year (Nikkei) 
 
(6) TOP HEADLINES 
 
(7) EDITORIALS 
 
(8) Prime Minister's schedule, Oct. 24 (Nikkei) 
 
ARTICLES: 
 
(1) Discontent simmering in prefectural police; SOFA barrier emerges 
again 
 
OKINAWA TIMES (Page 24) (Full) 
October 26, 2008 
 
Another case has emerged in which the Japan-U.S. Status of Forces 
Agreement (SOFA) is serving as a barrier. Now that the U.S. military 
took back (to its base) on Oct. 25 the fuselage of the crashed 
Cessna belonging to the U.S. military, discontent is simmering among 
(Okinawa Prefectural Police) investigative officers. An expert also 
descried it as a symbolic event of paradoxes in foreign military 
forces in Japan. 
 
"Seizure was necessary to determine the cause and secure evidence. 
It was just regrettable." 
 
Immediately after the accident occurred, the prefectural police 
obtained warrants necessary for searches and seizure. Because the 
accident occurred outside official duties, some police officials had 
expected that investigations would go relatively smoothly. But their 
expectations dashed as the U.S. military did not give its 
concurrence. 
 
Owned by the U.S. military and used by an association of aviation 
lovers affiliated with the U.S. military, the crashed aircraft was 
not connected with any military secrets. Despite that, the U.S. 
military rejected the prefectural police's request without citing 
any clear reason. This can explain why there is discontent in the 
prefectural police. 
 
Although the prefectural police intend to ask for (the U.S. 
military's approval) for future inspections, as necessary, what will 
happen in the future is unknown. In the wake of a U.S. military 
helicopter's crash in Okinawa International University in 2004, the 
U.S. military took back the chopper and did not effectively allow 
the prefectural police to conduct inspections. There was a case in 
 
TOKYO 00002997  002 OF 012 
 
 
the 1970s in which the U.S. military secretly took back the engine 
of the aircraft that had crashed outside Okinawa, a piece of 
evidence, to the U.S. mainland. 
 
An expert criticize the refusal as a symbolic event of paradoxes of 
U.S. forces in Japan 
 
Lawyer Yutaka Kato, who is well versed in the Japan-U.S. Status of 
Forces Agreement, said, "Because the U.S. military possesses the 
Cessna, the right rests with the U.S. military under the pact." At 
the same time, he criticized the U.S. military, saying: "U.S. 
military assets include even recreational objects. This shows that 
U.S. military privileges are granted based on clear policy intent. 
It is the typical paradox of the stationing of foreign military 
forces in Japan and allowing them to act freely." 
 
Okinawa Heiwaiinkai (Peace Committee) Secretary General Yasuhiro 
Okubo said: "In a situation where the perpetrator is not clearly 
identified and compensation remains ambiguous, the residents would 
suffer damage. The governments of Japan and the United States should 
unveil all bilateral agreements, including 'secret deals' and take 
their responsibility." Further, the Okinawa Heiwa Undou Center has 
decided to stage a protest rally in front of Kadena Air Base on the 
evening of Oct. 27. 
 
(2) Is Okinawa America's colony? Local residents angry with U.S. 
military's response following the crash of light aircraft 
 
RYUKYU SHIMPO (Page 27) (Full) 
October 26, 2008 
 
Nago 
 
In the wake of the crash of a U.S. military light aircraft (on Oct. 
24), the U.S. forces hurriedly dismantled the fuselage and removed 
it from the crash site on Oct. 25. Although the prefectural police 
sought to confiscate the aircraft to determine the cause of the 
accident and the facts, the U.S. military rejected the request. As 
was the case with the U.S. military helicopter that crashed into the 
campus of Okinawa International University in August 2004, the U.S. 
military took the lead in investigative procedures. A prefectural 
police source expressed strong discontent, saying: "They may still 
have the mentality of treating Okinawa as an American colony." 
Meanwhile, the local residents who pressed the U.S. military for 
access to the crash site were angry since they were kept out of the 
loop. 
 
Six hours into the on-site investigation that began shortly after 
noon Oct. 25, the demolished aircraft was loaded onto a trailer by a 
crane-like vehicle before the eyes of the residents of the Makiya 
district, where the accident had occurred. The trailer left the site 
shortly after 8:00 p.m. Without access to the crash sight, Makiya 
residents were left out of the loop. Representatives and others were 
angry, with one saying: "Why are the investigations proceeding under 
the initiative of the U.S. military? Isn't this the same as the 
Okinawa International University case?" While holding back their 
anger, the residents watched the trailer drove away from the site. 
 
The start of the on-site investigation, originally planned at 10:00 
a.m., was delayed abut two hours because talks between the 
prefectural police and the U.S. military experienced difficulties 
over a difference in views on how to conduct the investigation. The 
 
TOKYO 00002997  003 OF 012 
 
 
on-site investigation by the prefectural police ended in about three 
and a half hours. The police investigation was immediately followed 
by the U.S. military's work. As seen in the initial work to cut the 
wings, the procedures suggested that priority was given to 
collecting the plane rather than investigating the aircraft. 
 
The trailer to carry the fuselage arrived at the crash site at 
around 4:30 p.m. Upon learning of the transport of the fuselage, 
Makiya district representatives and others complained to Nago Police 
Station officers from outside the police line, "This is not what we 
heard." The Nago Police Station explained: "The investigation 
continued up to the removal of the fuselage. There still remains the 
collection of soil." Representatives who saw U.S. service members 
and others calmly conducted work for the removal of the aircraft all 
complained, with one saying, "Why do we have to be at the U.S. 
military's beck and call?" 
 
Kenji Kina, mayor of the Makiya district, made this comment about 
the fact that he did not have access to the crash site: "We are 
victims. We don't have access to the crash site, and we are very 
angry. As the mayor of the district, I have accountability to the 
district people. I'm worried since I won't be able to offer an 
adequate explanation." 
 
Nago military affairs special committee to meet tomorrow to discuss 
U.S. military protest resolution 
 
Nago 
 
Following the crash of the U.S. military aircraft in the Makiya 
district, Nago City, the Nago City Assembly decided on Oct. 25 to 
hold a meeting of the military base affairs special committee 
(chaired by Takehiro Toguchi) on Oct. 27. The committee is scheduled 
to discuss at its special meeting the adoption of a protest 
resolution against the U.S. military and a draft resolution. 
 
MOD Local Cooperation Bureau chief conveys regret to USFJ commander 
 
Defense Ministry Local Cooperation Bureau Director-General Motomi 
Inoue expressed his regret to U.S. Forces Japan Commander Lt. Gen. 
Edward Rice over the phone on Oct. 24, while calling for efforts to 
prevent a recurrence and determine the cause of the accident. 
 
Frustrated senior prefectural police officer says, "It's the same as 
at the time of the Okinawa International University accident" 
 
The U.S. military's rejection of the Okinawa Prefectural Police's 
request for the confiscation of the crashed airplane drew an outcry 
from some senior police officers. One officer said: "The accident 
occurred in a civilian area, and we don't want to see the U.S. 
military acts as it pleases. We expected the U.S. military's refusal 
from the beginning. The U.S. military seems to have a mentality of 
treating Okinawa as a colony, as was the days immediately after the 
end of the war." 
 
A prefectural investigation officer who had interviewed U.S. service 
members on the night of Oct. 24, said frustratingly: "We asked where 
they were stationed and their status, but they did not answer, 
saying they were ordered by their (military) superiors not to reveal 
them. It might follow the same path as the Okinawa International 
University accident." 
 
 
TOKYO 00002997  004 OF 012 
 
 
Another senior prefectural police officer expressed his anger about 
the fact that the Japan-U.S. Status of Forces Agreement (SOFA) 
stands in the way of their investigation, saying: "In investigating 
an accident, Japanese and foreigners must be treated equally. 
Charges must be filed based on evidence. But under the law (SOFA) 
such is not possible without the concurrence of the U.S. military." 
 
Large part of fuselage visible during transport without maintenance 
vehicles 
 
The aircraft in question was transported by a 20-meter-long trailer 
at around 8:15 p.m. Oct. 25 from the crash site in the Makiya 
district, Nago City. It arrived at Kadena Air Base's No. 1 Gate at 
around 9:40 p.m. via National Highway Route 58. 
 
Because a large part of the fuselage was visible even thought it was 
partially covered with a sheet of cloth, it drew much attention of 
other drivers who looked anxious. Accompanied by no maintenance 
vehicles, the trailer carrying the fuselage drove along National 
Highway Route 58 at a speed of 60-70 kilometers an hour, causing no 
congestion. 
 
(3) Prime Minister Aso aims to eradicate image of being hawk 
 
ASAHI (Page 4) (Full) 
October 25, 2008 
 
Prime Minister Taro Aso's meetings with the top leaders of China and 
South Korea -- his debut on the international scene -- were carried 
out in a friendly atmosphere. Aso has now laid the groundwork for 
his diplomacy of seeking practical results, wiping off his image of 
being a hawk politically. However, there still remain such issues as 
the gap in  historical views that need to be resolved between Japan 
and China and between Japan and South Korea. 
 
Mutual benefit by competition 
 
Aso delivered a speech on Oct. 24 in a ceremony for the 30th 
anniversary of the signing of the Japan-China Peace and Friendship 
Treaty. In it, he stressed the need for strengthening friendly ties 
between Japan and China, saying: "Competing while cooperating is a 
true strategic, mutual-benefiting relationship." A government 
official attended the ceremony gave a sigh of relief, saying: 
"Although there was a risk, he made a positive challenge. His speech 
was a hot topic of political conversations there and it is now 
highly regarded." 
 
Former Prime Minister Yasuo Fukuda is a pro-Chinese politician. Aso, 
however, has had an image of being a hawk. The notion of building 
"the arc of freedom and prosperity, which Aso advocated when he was 
foreign minister in the Abe cabinet, is a strategy of strengthening 
cooperation with countries from Southeast Asia to Eastern Europe. It 
was taken as a strategy of creating a net encircling Russia and 
China. Aso's idea provoked neighboring countries to anger. Aso's 
aide said: "Contrary to his real intent, it was taken as having an 
ideological side." Aso therefore has made efforts to sweep away such 
an image by putting an end to his call for an arc of freedom and 
prosperity in his speech at the United Nations General Assembly and 
in this policy speech. 
 
In his speech at the 30th anniversary of the Japan-China Peace and 
Friendship Treaty, Aso aimed to win China's trust by talking in his 
 
TOKYO 00002997  005 OF 012 
 
 
own words about Japan-China relations, while taking over the 
strategic reciprocal-relationship policy advocated by the Abe and 
Fukuda governments. The key words were "common benefits," 
"competition," and "potential." Aso appears to be building diplomacy 
toward China, while frankly speaking with China. Aso is trying to 
build relations with China under which both Tokyo and Beijing can 
talk about their real intentions so that he will be able to play up 
his diplomatic skills to the Japanese public. 
 
In his meeting the South Korean president, Aso conveyed his view to 
President Lee Myung Bak that he would take over a policy of moving 
forward with a mature partnership. While economic globalization is 
going on, relationships between Japan and China and between Japan 
and South Korea have become closer. A senior official said: "In 
consideration of Japan's present position, no Japanese prime 
minister can change the nation's foreign policy very much. 
 
China, South Korea expect Japan will continue to improve ties with 
them 
 
Chinese President Hu Jintao said: "China and Japan are standing at a 
starting point for new history of bilateral relations." Prime 
Minister Wen Jiabao said: "I believe that Prime Minister Taro Aso 
will promote China-Japan relations." The two Chinese leaders, who 
met with Aso at the Great Hall of the People in Beijing, were 
liberal in their praise. 
 
The Chinese government endeavored to lay the groundwork for Aso's 
visit to Beijing. According to Chinese sources, China informed Japan 
from early on of its decision to support Tokyo's bid for a 
non-permanent seat on the UN Security Council, resulting in Japan's 
overwhelming victory in the competition with Iran. 
 
However, China is still concerned about the weak political base of 
the Aso administration. A source connected with the Chinese 
Communist Party said: "In the China-Japan summit, which was held 
under the unstable Japanese political situation, what the two 
leaders could only do was to confirm the principles of bilateral 
ties." 
 
The summit between Aso and Lee was held in a friendly atmosphere. 
The South Korea Blue House said that the two top leaders had 
continued the talks beyond the expected time, while revealing 
President Lee's remarks: "Although ROK-Japan relations once came to 
a halt, they have never retreated. I hope they will not falter in 
the future as well." 
 
The word falter refers to the Takeshima/Dokdo islets, which were 
described in the Japanese education ministry's explanatory manuals 
of new curriculum guidelines for junior high schools when Prime 
Minister Fukuda was in office. The Lee administration was shocked 
since it had advocated a future-oriented relationship with Japan. 
 
A senior South Korean Blue House official said: "No such delicate 
issues as one on history were mentioned" in the Aso-Lee meeting. 
However, the Japanese government will discuss later this year 
whether to describe the Takeshima/Dokdo islets in new educational 
guidelines for high schools. Therefore, the South Korean government 
strongly suspects that bilateral ties between Tokyo and Seoul may be 
strained again even if they are repaired. 
 
(4) Japan should designate North Korea as terrorist state 
 
TOKYO 00002997  006 OF 012 
 
 
 
SANKEI (Page 15) (Slightly abridged) 
October 25, 2008 
 
By Hiroshi Yuasa, correspondent in Tokyo 
 
Hill made the remark 
 
In response to North Korea's "blackmail" that it would halt the 
process of disabling its nuclear facility, U.S. Assistant Secretary 
of State Christopher Hill gave in and decided to remove the North 
from the list of state sponsors of terrorism. 
 
He has forgotten the words by President Ronald Reagan: "Trust, but 
verify." What is worse, the Bush administration, which was critical 
of the Clinton administration for its reconciliatory stance toward 
North Korea, has now rejected its own policy toward the North. 
 
Since (the U.S.) in its policy toward North Korea has made light of 
Japan's wishes, Japan must now apply additional sanctions on the 
DPRK. This view was expressed in a front page article in the Sankei 
Shimbun on Oct. 13. In it, Fuji Kamiya, an professor emeritus at 
Keio University, suggested that Japan should designate North Korea 
as a terrorist state, because abducting is indisputably a terrorist 
act. This argument is quite reasonable, and I am willing to go along 
with his argument. 
 
There are few who remember that Assistant Secretary Hill had 
referred to the idea of Japan designating North Korea as a terrorist 
nation. Probably around this spring, Hill cynically said when asked 
by reporters whether the U.S. was planning to delist North Korea: 
"Our moves are line with the U.S. national interests. Japan should 
independently designate the North." 
 
I do not intend to use his words in an underhanded way, but Japan 
should not hesitate to designate North Korea as a terrorist state. 
Democratic Party of Japan (DPJ) Deputy Secretary General Akihisa 
Nagashima, a national security expert, made this reassuring remark 
in the Yomiuri Shimbun dated Oct. 21: "We should show to the 
international community our position of not letting this issue be 
moved off the table, for instance, by taking such measures as 
designating North Korea as a terrorist state." 
 
The Liberal Democratic Party, the DPJ, and the New Komeito revised 
the North Korean Human Rights Law in June of last year to add this 
provision: "The government must properly work on multilateral 
development banks to take steps that would contribute to resolving 
the issue of Japanese nationals abducted by North Korea." If it 
takes time to enact new legislation to designate North Korea as a 
terrorist state, Japan will be able to use this provision that would 
bring about the same effect. 
 
Mobilize all laws 
 
Although this is an irresponsible statement, may I suggest how about 
designating the regime of Kim Jong Il as a crime syndicate by using 
the Anti-mobster Law and then issuing an order to eliminate that 
regime? Applying domestic law is not a wild argument at all in the 
U.S. 
 
The U.S military detained Manuel Noriega and convicted of him under 
the federal charge of narcotic trafficking. When a Central 
 
TOKYO 00002997  007 OF 012 
 
 
Intelligence Agency (CIA) member was killed by a Pakistani, Federal 
Bureau of Investigation (FBI) members pursued the murderer who had 
fled to Pakistan, and brought him to the U.S. A ruling was handed 
down there. 
 
The U.S. is quite a stouthearted nation. Japan, though it does not 
have such undaunted courage to that extent, should be determined to 
slap sanctions against the North and prepare a strategy to that 
end. 
 
Washington's removal of North Korea from its terror blacklist leads 
to enabling the North to receive financial aid from international 
financial institutions and to start monetary transactions with the 
U.S. This means the U.S. sanctions against North Korea will end. 
There is no other way but for Japan, which is saddled with the 
abduction issue, to call on international financial institutions to 
refrain from offering aid to the North. 
 
Japan is the second largest contributor to the World Bank and is the 
largest contributor to the Asian Development Bank. There is an 
option of taking the top post in the World Bank from the U.S. by 
injecting significantly more capital in the bank. In this case, 
Japan will be able to demand the presidency of the World Bank now 
held by the U.S., as its right to speak will increase in the bank. 
 
In the 1990s, Japan gave up the top post just before it was about to 
outpace the U.S. in terms of contributions in the 9th capital 
increase of the International Monetary Fund (IMF). The change of top 
contributors means that the U.S.-led postwar regime will encounter a 
challenge. (The U.S.) in a flurry came to ask then Finance Minister 
Kiichi Miyazawa to cancel the capital investment. 
 
North Korea might find it easier to ask the Asian Development Bank 
to finance it. The top post in the Asian bank is now held by 
Haruhiko Kuroda, a former Finance Ministry official, and China 
reportedly is watching eagerly to get a chance to grab the post. To 
prevent its scheme from being implemented, it is conceivable for 
Japan to increase capital or change its members to form a powerful 
lineup. These measures, in addition to economic sanctions, are 
expected to work effectively to apply pressure to the North. 
 
U.S. government also divided 
 
Views in the U.S. government were also split over whether to remove 
North Korea from its blacklist. Some of those who were close to Hill 
have begun to leave. 
 
The condition for delisting a nation under the Antiterrorism Law is 
that the nation should promise not to support international 
terrorism and acts of terrorism in the future as a result of 
fundamental changes in the leadership and policies. North Korea has 
yet to fulfill this condition. 
 
Did Washington make the concession, reflecting the current 
administration's irritation in its last days, or in an attempt to 
keep the North in negotiations until the inauguration of the next 
administration? That is why the U.S. is alarmed at a mounting mood 
against it or the emergence of an argument in Japan calling for 
Japan to go nuclear. The Japanese government should repeatedly call 
on the U.S. government to withdraw the delisting decision as the 
need arises. 
 
 
TOKYO 00002997  008 OF 012 
 
 
(5) Sakhalin-2 Project: Exports of LNG to Japan likely to begin 
early next year 
 
NIKKEI (Page 6) (Full) 
October 27, 2008 
 
The Sakhalin-2 project for the development of resources off 
Sakhalin, Russia, has at long last entered the final phase in the 
run-up to full operations after all sorts of troubles and 
difficulties. The construction of a liquefied natural gas (LNG) 
manufacturing plant and pipelines has almost been completed. While 
there is concern about the future of the Sakhalin-1 project due to a 
fall in crude oil prices and the financial crisis, exports of LNG to 
Japan in the Sakhalin-2 project, into which Japan has poured funds 
and technologies, will begin as early as next January or February. 
 
There is a cluster of brand-new plants facing the Aniva Bay, about 
one-hour drive from Yuzhno Sakhalinsk, a central city on the 
Sakhalin Island. This is the port for the shipment of LNG and crude 
oil produced in the Sakhalin-2 Project located in Prigorodnoye. 
 
Ian Craig, president of Sakhalin Energy, a consortium to develop 
Sakhalin-2 oil and gas project, pointed out, "The project has 
entered the commercialization stage." He said, "I cannot say 
definitely, but I hope to start exporting LNG as early as early next 
year." 
 
Crude oil and natural gas mined in epicontinental mining areas in 
the northern part of the island will be transported to the shipment 
port in Prigorodnoye via pipelines. Natural gas will be liquefied 
there and shipped by special vessels. Japan's technologies were used 
in the project -- the construction of the LNG plants by Chiyoda 
Corporation and Toyo Engineering and the building of LNG ships -- by 
Mitsubishi Heavy Industries. 
 
The output of LNG is about 9.6 million tons a year. Approximately 60 
PERCENT  of the total output is bound for Japan. TEPCO, Kyushu 
Electric Power Co. and Tokyo Gas have signed long-term contracts. 
Japan is expected to depend on the Sakhalin-2 project for about 8 
PERCENT  of its gas demand. The sales of crude oil, whose production 
started in 1999, are mainly Japan-bound. The completion of the 
Sakhalin-2 project will likely help Japan put an end to its 
dependence on the Middle East in terms of the procurement of 
energy. 
 
The commercialization of the project was realized after many twists 
and turns. The project cost has doubled from the original estimate. 
Russia at one stage cancelled the authorization of the construction 
work, using environmental destruction as justification. The project 
was at one time on the verge of disruption. At work behind the 
complications was the Russian government's hard-line stance. It 
increasingly strengthened the control of energy resources. In the 
end, however, the problem was settled with Russia's Gazprom, a 
natural gas monopoly, taking over a majority of interests in the 
project. 
 
President Craig said, "The participation of Gazprom was helpful for 
the construction of pipelines." The financial standing of Gazprom 
has deteriorated due to the current financial crisis. However, Japan 
Finance Corporation (former Japan Bank for International 
Cooperation) and a group of private banks have already decided to 
extend loans for the Sakhalin-2 project. With facilities almost 
 
TOKYO 00002997  009 OF 012 
 
 
completed, the project will now enter a full fund-collection phase. 
The outlook is that if crude oil prices stand at about 70 dollars 
per barrel, it would be possible to collect the invested money by 
around 2012. 
 
The project has benefited the Province of Sakhalin. The Sakhalin 
Governor Alexander Khoroshavin said, "The Sakhalin Resources 
Development Project contributes to 75 PERCENT  of the industrial 
production in the Sakhalin Province." He expressed expectations for 
Japan boosting investment, noting that the project has led to 
improved income of residents and a decline in the unemployment 
rate. 
 
The Far East is lagging behind the European side of Russian in terms 
of the development of the economy. It is a pressing issue for the 
federal government to develop the economy of the Far East. 
 
A plan to export natural gas to China in the Sakhalin-1 Project, 
joined by Itochu Corporation and Marubeni Corporation, has been 
under suspension due to pressure from the Russian government and 
Gazprom. The future of the project is becoming increasingly unclear 
due to the decline in crude oil prices and the financial crisis. It 
seems difficult for more Japanese companies to join the project as 
long as the Russian government changes rules, based on opportunism. 
 
(6) TOP HEADLINES 
 
Asahi: 
Prime Minister Aso seek to ease bank accounting rules to help 
stabilize financial markets 
 
Mainichi: 
Three leading banks mulling capital increase of up to 1 trillion 
yen: Stock plunges beginning to affect Japanese banks 
 
Yomiuri: Nikkei: Sankei 
Emergency economic market stabilization measures: Government eyeing 
boosting capital injections into banks to 10 trillion yen 
 
Tokyo Shimbun: 
Government mulling dispatching GSDF personnel to Afghanistan to help 
wounded soldiers: Complying with U.S. request could infringe on 
Constitution 
 
Akahata: 
Preferential securities tax system: Ten rich persons with income 
more than 10 billion yen receive tax cut worth 18.3 billion yen 
 
(7) EDITORIALS 
 
Asahi: 
(1) Plunge in crude oil prices: Lessons learnt 
(2) Academic studies: University should make best use of women's 
ability 
 
Mainichi: 
(1) Cabinet Office Personnel Division should devise system that is 
not a stopgap measure 
(2) Financial crisis: Economy that can control market should be 
built 
 
 
 
TOKYO 00002997  010 OF 012 
 
 
Yomiuri: 
(1) Road map for tax system: Consumption tax is the only mid-term 
fiscal resource 
(2) Print Culture Day: Value encounter with books 
 
Nikkei: 
(1) Thoughts on freezing current value accounting system 
 
Sankei: 
(1) Japan-India summit: Cooperation with largest democratic country 
(2) Book Week: Make children book-lovers 
 
Tokyo Shimbun: 
(1) OPEC cuts back on oil production: Continue to make effort to 
stop excessive dependence on oil 
(2) Large city system covering :Yokohama, Osaka and Nagoya urged to 
make proposals as representative of provincial areas 
 
Akahata: 
(1) Credit crunch, forcible collecting of loans: Guidance strict to 
major banks needed 
 
(8) Prime Minister's schedule, Oct. 24 
 
NIKKEI (Page 2) (Full) 
October 25, 2008 
 
Morning 
Held a meeting with South Korean President Lee Myung-bak at a hotel. 
Met Chinese President Hu Jintao and Prime Minister Wen Jiabao at the 
People's Great Hall in succession. 
 
Noon 
Attended a reception for the 30th anniversary of the conclusion of 
the Treaty of Peace and Friendship between Japan and China. 
 
Afternoon 
Responded to an interview with reporters from press companies at a 
hotel. Met with German Chancellor Merkel at a hotel. Attended a 
welcome ceremony of the ASEM summit at the People's Great Hall. 
Posed for a photo. 
 
Evening 
Attended an opening ceremony. Briefly talked with Mongolian 
President Enkhbayar. 
 
Night 
Attended a working dinner. Held an informal meeting with 
accompanying reporters at a hotel. Stayed there. 
 
Prime Minister's schedule, October 25 & 26 
 
NIKKEI (Page 2) (Full) 
 
October 26, 2008 
 
Oct. 25 
 
Morning 
Briefly talked with Austrian Prime Minister Gusenbauer at the Great 
Hall of the People in Beijing. Attended the second round of the ASEM 
summit. Met with Pakistan Prime Minister Gilani. 
 
TOKYO 00002997  011 OF 012 
 
 
 
Noon 
Attended a working lunch. 
 
Afternoon 
Met Italian Prime Minister Berlusconi. Later, met French President 
Sarkozy. Attended a closing ceremony. Responded to an interview with 
correspondents from Japan and other countries. Met Japanese 
nationals living in China at the Japanese Ambassador's Official 
Residence. Left Beijing International airport by government plane. 
 
23:45 
Arrived at Haneda Airport. 
 
Oct. 26 
 
00:34 
Returned to his private residence in Kamiyama-cho. 
 
Prime Minister's schedule, Oct. 26& 27 
 
NIKKEI (Page 2) (Full) 
 
October 27, 2008 
 
Oct. 26 
 
12:35 
Took a walk around his private residence in Kamiyama-cho. 
 
15:39 
Reported on his return home at the Imperial Palace. 
 
16:02 
Met Metropolitan Police Board's Criminal Investigation Chief 
Funamoto, First Investigation Division Chief Tachinobe, and Station 
Chief Katsuta at the Manseibashi Police Station. 
 
16:31 
Delivered a speech in front of JR Akihabara Station. 
 
17:25 
Held a talk show with cartoonists, Takao Saito and Kenshi Hirokane 
at Akihabara UDX. Later, enjoyed a comic character exhibition, with 
METI Minister Nikai and Hirokane. 
 
18:24 
Attended a joint meeting of nationwide LDP youth department heads, 
youth section heads, and women's department heads at the Grand Arc 
Hanzomon. 
 
20:10 
Dined with his secretaries at a Chinese restaurant in the Grand 
Prince Hotel. 
 
22:06 
Met Finance Minister and Financial Services Minister Nakagawa, Vice 
Finance Minister Sugimoto, Secretariat Director General Katsu, and 
Financial Services Agency Director General Sato. 
 
23:14 
Arrived at a pub in the hotel with the secretaries. 
 
TOKYO 00002997  012 OF 012 
 
 
 
Oct. 27 
 
00:30 
Returned to his private residence. 
 
SCHIEFFER